Pentahold takes both majority and substantial minority stakes for both the long and medium term. Its investment horizon can, but does not have to be linked to a predefined term. Pentahold has the flexibility to adjust the investment horizon in function of the company’s strategic evolution and performance. Pentahold has gained extensive experience in the past in co-investing with other financial parties or in an “equal party” structure (50/50).
Pentahold invests amounts between 2.5 and 25 million EUR per participation. This can take different forms, such as capital, mezzanine financing and loans. Pentahold only provides mezzanine financing and/or loans in combination with a participation in the share capital of the company. Consequently, Pentahold aims to transact with companies that realize an EBITDA between 1 and 20 million EUR. For larger transactions, Pentahold has a network of financial co-investors with comparable investment criteria.
Management plays a crucial role in the investment case for Pentahold. Sufficient time is always provided in the preliminary phase to get to know the management and to coordinate the joint objectives. An excellent mutual fit combined with a good corporate culture are essential for the intense further cooperation. Pentahold never replaces the management, but will take the important decisions together with the team in partnership and make the fundamental choices of the company, which always fit within the jointly defined strategic plan. The management team is encouraged to participate in their company through their own investment or an option plan with the intention of allowing them to participate in the realized added value creation.
Pentahold has no specific sectoral focus, but companies with a product or service still under development or where the customer base and/or market potential are not yet clear (rather venture capital), fit less into the investment scope. Companies with a growth trajectory and/or with a potential for internationalization are closely aligned with Pentahold’s investment focus and track record. The strategic growth plan, based on a shared vision, built around the execution of a buy-and-build strategy or an organic growth trajectory is the basis for a clear framework for the future collaboration between Pentahold and the company’s management.